Zomato Shares Rally 6% To Hit A Fresh All-Time High At INR 304.50

Shares of Zomato extended gains for the second consecutive day and jumped over 6% during the intraday trading session today (December 5) to hit a fresh all-time high at INR 304.50 apiece on the BSE.

The surge in the stock’s price came on the back of heavy volumes, with over 5.84 Cr equity shares worth INR 1,770.06 Cr changing hands on the BSE and NSE.

At the time of writing, the foodtech major’s market capitalisation stood at INR 2,92,405.62 Cr (about $34.5 Bn).

On a year-to-date basis, the stock has skyrocketed 142%, outperforming benchmark equity index BSE Sensex, which has climbed a little over 11% during the period. The stock has ended in green in 9 out of the last 13 trading sessions.

Recently, analysts at Morgan Stanley said Zomato’s stock has the potential to double in value within five years — or even in less than three years under a bullish scenario.

The brokerage raised its price target for the foodtech giant to INR 355 per share from INR 278 earlier while reaffirming its “overweight” call on the stock, citing Zomato’s lead in the quick commerce market, strong execution in food delivery, healthy balance sheet, and a large pool of profit by 2030.

It is pertinent to note that Zomato has since raised INR 8,500 Cr (over $1 Bn) via qualified institutional placement (QIP) to maintain its lead in the food delivery and quick commerce segments and scale its going-out or District vertical.

According to Motilal Oswal, Zomato held a 58% market share in the food delivery segment in Q1 FY25, while Swiggy trailed behind at 42%. Further, Zomato-owned Blinkit led the quick commerce race with a 46% market share, followed by Zepto at 29% and Swiggy Instamart at 25%.

However, Zomato is facing intense competition from rivals such as Swiggy and Zepto who are looking to leverage their own capital to pull closer. Swiggy just pocketed $1.35 Bn through its IPO, while Zepto secured over $1 Bn in VC funding this year. Further, the competition has also intensified with the entry of Flipkart, Tata-owned Big Basket, and Reliance in the rapid delivery segment.

Shares of Zomato were trading 5.51% higher at INR 301.80 apiece on the BSE at 11:47 AM.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.